Why business insurance needs to be part of a preparedness plan

California small and medium-sized business owners are unlikely to experience a hurricane in their location. Even so, it is important to take note of events like Hurricane Sandy, and ensure that their companies will be able to withstand unexpected events and maintain regular daily operations.

According to a survey from FedEx and the American Red Cross, 70 percent of small businesses don't consider themselves at risk for experiencing a disaster similar to the superstorm. Furthermore, companies that were affected by Hurricane Sandy, half of them felt it was unlikely they would experience an event like that within the next five years.

"Preparedness is a lot like working out and eating—healthy people know they should do it, but it's not always at the top of the list," Tom Heneghan, manager of preparedness for the American Red Cross, said in a press release. "Developing an emergency preparedness plan is one of the most important strategic decisions a small business owner will make."

However, even with many company leaders not thinking that a disaster will strike, 51 percent of respondents said that they do have a plan in place to continue providing services to customers should anything happen. A majority—92 percent—have an emergency plan that centers around having strong data backup.

For companies that operate in the Golden State, having the right California business insurance can greatly assist in any recovery efforts, should a natural disaster occur. Having comprehensive policies in place will not guarantee that nothing will ever happen, but it can assist in rebuilding efforts and ease some of the financial burden.